The earnings position of HeidelbergCement improved further in the 2013 financial year compared with the previous year.
Revenue in 2013 decreased marginally compared with the previous year. It fell by 0.6% to €13,936 million (previous year: 14,020), which is entirely due to the weakening of numerous currencies against the euro, amounting to a total of €664 million. Consolidation effects of €130 million had
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a positive impact. Excluding exchange rate and consolidation effects, revenue rose by 3.4 %. Above all, this reflects the positive development of sales volumes and successfully implemented price increases in major markets.
Material costs declined by 2.4 % to €5,795 million (previous year: 5,936), which is primarily due to a decrease in expenses for energy (-4.6 %) and raw materials (-7.8 %). Other operating expenses and income were 3.0 % above the previous year’s level at €3,428 million (previous year: 3,327), which is primarily a consequence of the decline in book profits from the sale of intangible assets and property, plant, and equipment. In addition to the decrease of €64 million from the sale of surplus emission rights, a decline of €42 million in book profits arose from the scheduled sale of exhausted quarries in Canada that were no longer in operational use. Personnel costs fell slightly by 1.2 % to €2,302 million (previous year: 2,331). The average number of employees also dropped slightly by 0.8 %, while personnel costs remained more or less stable in relation to revenue at 16.5 % (previous year: 16.6 %). Operating income before depreciation (OIBD) fell marginally by 2.1 % to €2,424 million (previous year: 2,477).
The decline of €40 million in the amortisation of intangible assets to €31 million (previous year: 71) is primarily based on the devaluation of emission rights by €38 million as a result of reduced market prices. The depreciation of property, plant, and equipment decreased slightly to €787 million (previous year: 801). Operating income rose by 0.2 % to €1,607 million (previous year: 1,604). Additional ordinary result improved by €411 million to €2 million (previous year: -409). The increase of €320 million in additional ordinary income is primarily due to foreign exchange re- lated profits from the repayment of capital and the following deconsolidation of a foreign finance company as well as the divestment of a non-controlling interest in a precast concrete company in Saudi Arabia. The decline of €90 million in additional ordinary expenses to €325 million (previous year: 415) relates mainly to a decrease in impairment losses of property, plant, and equipment by €74 million and a decrease in sales and deconsolidation losses from the disposal of business units by €73 million. A countering effect had mainly additional expenses in the amount of €37 million in connection with the fine that was imposed by the Düsseldorf High Court in the German cartel proceedings and upheld by the Federal Court of Justice. The fine was paid in full in 2013. At €41 million (previous year: 44), result from participations remained almost unchanged. Overall, earnings before interest and taxes (EBIT) increased by €411 million to €1,650 million (previous year: 1,239).
Financial result improved by €79 million to €-569 million (previous year: -648). Lower interest expenses as a result of the refinancing at more favourable conditions of the US$750 million bond, which was repayed in March 2013, as well as the improvement of the interest portion from the valuation of non-current provisions had a substantial impact on this figure. Offsetting effects arose from foreign exchange losses.
Profit before tax from continuing operations rose by €489 million to €1,081 million (previous year: 592). Expenses relating to income taxes increased by €81 million to €233 million (previous year: 152). Of this increase, €29 million related to current taxes amounting to €399 million (previous year: 370). Withholding tax connected to the sale of the non-controlling interest in Saudi Arabia, as well as the release of long-term tax liabilities no longer required to profit or loss in 2012 had a substantial impact. The income from deferred taxes fell by €53 million to €166 million (previous year: 219), which is largely attributable to the measurement of financial instruments in accordance with IAS 39. As a result, the effective tax rate decreased in comparison with the previous year from 25.6 % to 21.6 %. Net income from continuing operations thus amounts to €848 million (previous year: 440).
Net income from discontinued operations rose to €98 million (previous year: 89). This increase principally resulted from the recognition of receivables towards insurers based on a final court ruling. Further comments are provided in the Notes on page 196.
Overall, a profit of €945 million (previous year: 529) was recorded for the financial year. Profit attributable to non-controlling interests fell by €44 million to €200 million (previous year: 244). Thus, the Group share of profit amounts to €745 million (previous year: 285).
Earnings per share – Group share – in accordance with IAS 33 rose to €3.98 (previous year: 1.52). For continuing operations, the earnings per share increased to €3.46 (previous year: 1.04). In view of the positive business development, the Managing Board and Supervisory Board will propose to the Annual General Meeting on 7 May 2014 the distribution of a dividend of €0.60 (previous year: 0.47) per share.
Consolidated income statement (short form)
€m 2012 1) 2013 Change
Revenue 14,020 13,936 -1 %
Operating income before depreciation (OIBD) 2,477 2,424 -2 % Amortisation and depreciation of intangible assets and
property, plant, and equipment -873 -818 -6 %
Operating income 1,604 1,607 0 %
Additional ordinary result -409 2
Result from participations 44 41 -6 %
Earnings before interest and taxes (EBIT) 1,239 1,650 33 %
Financial result -648 -569 -12 %
Profit before tax from continuing operations 592 1,081 83 %
Income taxes -152 -233 54 %
Net income from continuing operations 440 848 93 %
Net income from discontinued operations 89 98 11 %
Profit for the financial year 529 945 79 %
Group share of profit 285 745 162 %
1) Amounts restated